The Hawaii Department of Health has fined a mainland developer $14,000 for failing to obtain proper permits and discharging stormwater runoff from a construction site in the Olomana Heights subdivision of Kailua.

DOH issued a Notice of Violation and Order to Arizona-based Arcus Secured Loan Fund III LLC for failing to obtain a water pollution control permit and discharging runoff from two lots – referred to as “Lots 1 and 2” — at 42-100 Old Kalanianaole Road.

Officials said sediment from the construction site ran into Kaelepulu Stream and neighboring properties.

“This construction project threatens neighbors in Kailua and our environment,” said Deputy Director of Environmental Health Kathleen Ho in a news release. “It’s critical that its owner obtain and comply with permits that prevent polluted runoff and protect state waters when doing business in Hawaii.”

DOH said a stop work order was issued to Arcus on May 3, when unpermitted construction activity at the site was first observed. The two lots together make up about 11 acres, according to the notice.

The $14,000 penalty is based on seven counts of discharging pollutants to state waters without a National Pollutant Discharge Elimination System permit between May 3 and Aug. 23, DOH said, based on seven separate rain events recorded by a nearby rain gauge, and one count of initiating construction activity without a NPDES permit on Aug. 29.

It is the the second enforcement order associated with this construction project, DOH said.

The first, issued to the previous owner, Sound Investments LLC in 2018, remains open and unresolved.


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